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Profit maximization-does it matter?

Author

Listed:
  • Katherine D. Young

    (Clemson University (formerly a research assistant in agricultural economics, Texas A&M University))

  • C. Richard Shumway

    (Agricultural Economics, Texas A&M University)

  • H. L. Goodwin

    (Agricultural Economics, Texas A&M University)

Abstract

Comparative hypotheses are statistically tested for a random sample of Texas producers who perceive themselves as profit maximizers and those who do not. Those who assert that they are in the cow-calf business primarily to maximize profits have on average larger herd sizes and acreage, they earn a greater percent of their total net income from farming and ranching, and they place more emphasis on supportive economic motivations and less on social reasons for owning cattle. Off-farm employment status and the qualitative response to changes in price expectations are not unambiguously related to perceived motivations.

Suggested Citation

  • Katherine D. Young & C. Richard Shumway & H. L. Goodwin, 1990. "Profit maximization-does it matter?," Agribusiness, John Wiley & Sons, Ltd., vol. 6(3), pages 237-253.
    • Handle: RePEc:wly:agribz:v:6:y:1990:i:3:p:237-253
    DOI: 10.1002/1520-6297(199005)6:3<237::AID-AGR2720060306>3.0.CO;2-Q
    as

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    References listed on IDEAS

    as
    1. Debertin, David L. & Pagoulatos, Angelos, 1985. "Optimal Management Strategies for Alfalfa Production Within a Total Farm Plan," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 17(2), pages 127-138, December.
    2. McKay, Lloyd & Lawrence, Denis & Vlastuin, Chris, 1983. "Profit, Output Supply, and Input Demand Functions for Multiproduct Firms: The Case of Australian Agriculture," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 24(2), pages 323-339, June.
    3. David R. Lee & Peter G. Helmberger, 1985. "Estimating Supply Response in the Presence of Farm Programs," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(2), pages 193-203.
    4. Robert D. Weaver, 1983. "Multiple Input, Multiple Output Production Choices and Technology in the U.S. Wheat Region," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(1), pages 45-56.
    5. Ramon E. Lopez, 1984. "Estimating Substitution and Expansion Effects Using a Profit Function Framework," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(3), pages 358-367.
    6. C. Richard Shumway & Robert W. Blake & David J. Leatham & Michael A. Tomaszewski, 1987. "Assessing the comparative economics of a biotechnology: Artificial insemination dairy sires," Agribusiness, John Wiley & Sons, Ltd., vol. 3(2), pages 207-220.
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    Citations

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    Cited by:

    1. Dennis M. Conley, 1992. "Internal decision making in an agribusiness: A case study," Agribusiness, John Wiley & Sons, Ltd., vol. 8(4), pages 387-397.
    2. Moghnieh, Ghassan A. & Featherstone, Allen M. & Goodwin, Barry K., 1991. "A Nonparametric Analysis of Cost Minimization and Profit Maximization Behavior for a Sample of Kansas Farms," Staff Papers 118197, Kansas State University, Department of Agricultural Economics.
    3. Greiner, Romy, 1998. "Catchment management for dryland salinity control: Model analysis for the Liverpool plains in New South Wales," Agricultural Systems, Elsevier, vol. 56(2), pages 225-251, February.

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